Undiscovered Gems In United States Backed By Strong Fundamentals

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The market is up 1.9% over the last week, with the Information Technology sector up 2.8%. Over the past 12 months, the market is up 33%, and earnings are forecast to grow by 15% annually. In this robust environment, identifying stocks with strong fundamentals can uncover hidden opportunities for investors seeking growth.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

10.20%

-0.28%

6.97%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

First National Bank Alaska

221.06%

2.98%

1.82%

★★★★★☆

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

QDM International

36.42%

107.08%

78.76%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 207 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada, with a market cap of $918.42 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, totaling $192.69 million. The company's market cap stands at $918.42 million.

Sezzle has shown impressive financial performance, with earnings growth of 434.8% over the past year, significantly outpacing the Diversified Financial industry’s 10.5%. The company’s debt to equity ratio has improved from 1676.6% to 137% in five years, indicating better financial health. Sezzle's net income for Q2 2024 was US$29.7 million compared to US$1.14 million a year ago, and its basic earnings per share increased from US$0.20 to US$5.25 during the same period

NasdaqCM:SEZL Debt to Equity as at Sep 2024
NasdaqCM:SEZL Debt to Equity as at Sep 2024

SBC Medical Group Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated operates in the healthcare sector, offering various medical services with a market cap of $586.38 million.

Operations: SBC Medical Group Holdings generates revenue primarily from its healthcare facilities and services, amounting to $217.54 million.

SBC Medical Group Holdings, a small cap healthcare entity, is trading at 94.1% below its estimated fair value. Over the past year, earnings surged by 164%, significantly outpacing the industry’s 8% growth rate. The company is free cash flow positive and holds more cash than total debt, highlighting strong financial health. Despite high-quality earnings and profitability that alleviates cash runway concerns, SBC's share price has been highly volatile in recent months.

NasdaqGM:SBC Debt to Equity as at Sep 2024
NasdaqGM:SBC Debt to Equity as at Sep 2024

Centrus Energy

Simply Wall St Value Rating: ★★★★★☆

Overview: Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally, with a market cap of $818.88 million.

Operations: Centrus Energy generates revenue primarily from its Low-Enriched Uranium (LEU) segment, contributing $320.80 million, and Technical Solutions segment, adding $71.80 million. The company has a market cap of $818.88 million.

Centrus Energy has seen impressive earnings growth of 164.9% over the past year, significantly outpacing the -31.9% decline in the Oil and Gas industry. Trading at 67.1% below its estimated fair value, it appears undervalued. The company reported Q2 revenue of US$189 million, up from US$98.4 million a year ago, with net income rising to US$30.6 million from US$12.7 million previously. Despite recent insider selling and share dilution, Centrus remains profitable with high-quality earnings and positive free cash flow.

NYSEAM:LEU Earnings and Revenue Growth as at Sep 2024
NYSEAM:LEU Earnings and Revenue Growth as at Sep 2024

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqCM:SEZL NasdaqGM:SBC and NYSEAM:LEU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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